View full sizeA project to improve downtown Montevallo is part of the spending plan for a $5 million loan secured by the Montevallo Development Cooperative District. (Martin J. Reed / mreed@al.com)

MONTEVALLO, Alabama -- The Montevallo Development
Cooperative District has finalized a roughly $5 million loan that will help fund projects valued at $9 million total in the city including paving,
a City Hall renovation and Main Street improvements.

Dee Woodham, the district's chairwoman and a member of
the Montevallo City Council, said the group completed the process last Friday
for the $5 million loan through Trustmark bank. The loan spans 17 years at
3.25 percent.

"We shopped the rate and terms with multiple banks and
bond underwriters and Trustmark provided the best overall package and have been
wonderful to work with," Woodham said in an e-mail.

The district that consists of a member from the city,
the University of Montevallo and Shelby County government unanimously approved documentation
for the loan at its meeting Sept. 23. The district will utilize a 1 percent
sales tax specifically for city improvements to pay off the loan.

The funding will help pay for a variety of projects
approved by the Montevallo City Council and the district's three-member board.

The projects include $1.5 million for road paving
throughout Montevallo that will take a year to complete and $1.1 million for City Hall's renovation that will expand the building and connect it to the neighboring
police department. Possible library improvements could be part of the City Hall
project, which has a completion date of November 2014.

Other projects lined up include $535,000 needed for a
match and engineering costs for the $2.8 million Main Street improvement
plan through the Alabama Department of Transportation. Sidewalks, streets and
utilities are part of the overall plan for the Main Street's renovation that could
end in August 2015.

The city is looking to replace street signs for a total
of $100,000, establish a way-finding system with directional signs throughout
town for $100,000 and renovate Stephens Park for $194,000.

The district will use the loan to repay amounts on older
projects including the former Alabama Power building purchase for $283,333, the
promenade that connects the university and Orr Park for $524,285 and a $12,327
payment on the former Alabama Coach Co. building.

The Alabama Power office complex has been converted into
the University of Montevallo's Main Street building, while the district is
hoping to lease the former Alabama Coach structure to a restaurant operator. If
needed, the loan would cover an estimated $100,000 repair for roof and window
replacement at the vacant building.

The loan would provide a $146,760 payment for the
University of Montevallo's new track facility and $71,760 to renovate the
softball field at Orr Park into a stadium for the university's women's softball
team. Both venues have a completion date of September 2014.

The American Village would receive $100,000 toward its
veterans' shrine, amphitheater and trail projects. The projects will help drive
tourism into Montevallo, according to the district.

The district is anticipating spending $50,000 on
demolition of condemned houses, another $7,069 on sidewalk and storm drainage
issues in downtown and $20,000 for a hotel feasibility study, with $160,000
reserved for contingency purposes on the entire list of projects.

"The Mayor, City Council and MDCD are all very excited
about the positive changes taking place in town," Woodham said. "It's really
incredible to see all the student foot traffic every day around town."